ASIC recently issued Report 605 Allocations in Equity
Capital Transactions (Report) and a
summary version of the Report, Report 606, following a review of
allocation processes in primary and secondary market transactions.
The purpose of ASIC's review was to consult with
Australian financial services licensees
(licensees), corporate advisers, corporate
issuers, investors and regulators to understand how licensees make
allocation recommendations. The review focused on the
allocation of securities to parties connected to the licensee, the
management of conflicts of interest and investigated processes for
approving messages sent by licensees and issuers to investors.
The Report seeks to provide 'better practice'
recommendations to licensees and listed entities, or entities
seeking to list on an exchange, for the allocation of securities in
equity raising transactions in the Australian market.
